The manufacturing industry is on the rise, and so is the trajectory of the manufacturing CFO, whose role now goes well beyond the bottom line. Based on insights from Grant Thornton LLP's Value-Adding Strategies survey of 350 finance executives, we share insights about some of the CFO’s top priorities, including optimizing the supply chain, ramping up IT security, re-examining taxes, funding innovation and preparing her company for M&A.

1. Future growth
and how manufacturing
CFOs can achieve it
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2. New manufacturing landscape
calls for new strategies
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INTRODUCTION
• Rapid changes in technologies are changing
how manufacturing execs make decisions.
• Real-time data and information are available
via business analytics and the Internet of
Things, a network of interconnected devices
that communicate with one another to
improve automation and efficiency.
• Leadership opportunities for CFOs abound.
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3. Supply chain management is a
rising agenda item for CFOs
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• 63% of executives lead, are involved with
or know about their company’s supply
chain strategy.
• 85% of manufacturing executives rate
supply chain management as important
to their companies’ strategic visions.
• Only 29% use business analytics to
identify new suppliers and supply savings.
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4. 4 benefits to a value-added
supply chain
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INTRODUCTION
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Get greater economic value and better
performance from the supply chain
Understand what your customer demands from
your supply chain
Understand sourcing regulations and customer
requirements
Minimize supply chain risks

5. Rethink your supply chain:
Questions to ask
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Suppliers
Why these vendors?
Do they provide
economic value?
How difficult is it to
change vendors?
Goods (materials,
parts)
Why are these goods
sourced from specific
vendors?
Do alternative vendors
exist that offer greater
future value?
Movement of goods
Why was our supply
chain designed this
way?
Who on our team is
responsible for analyzing
data and improving
processes and the flow
of goods?
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6. What measures should
executives use to evaluate
supply chain performance?
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INTRODUCTION
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Tip: Don't just look at
the past and present.
Assess current
performance against
potential performance.
• Total acquisition or landed cost,
not per-unit costs
• Quality
• Responsiveness, flexibility, capacity
• On-time delivery
• Potential savings of operational
excellence

7. Additional supply chain
measures to consider
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INTRODUCTION
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• Financial health (solvency)
• Knowledge/capabilities/skills
• Responsiveness/flexibility
• Transparency regarding supplier sources
• Relationships (e.g., your customer's preference)
• Tax advantages or disadvantages
• Corporate governance/ethics
• Geopolitical risk

8. Also on the manufacturing
CFO's agenda:
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• Business data and IT risks
• Innovation
• M&A
Here's what the survey revealed about each of
these issues…

9. Leading CFOs use data to
protect the enterprise
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INTRODUCTION
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How manufacturing CFOs are using business analytics
Better strategic decision-making 59%
Better operational decisions 56%
Identified new markets, customers 43%
Top 3 perceived threats to IT security
Employee use of the Internet 50%
External threats (i.e., hackers) 50%
Employee remote access of corporate systems 46%

10. Value-added CFOs focus on
innovation
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INTRODUCTION
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• 4 in 5 say innovation is important
or highly important to their
company’s strategic vision.
• 1 in 2 manufacturers invest more
than 6% of revenue in innovation.
• Key sources for new ideas come
from R&D (77%), marketing and
sales (64%), customers (63%), and
their manufacturing function (55%).

11. CFOs set the table for
successful M&A
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INTRODUCTION
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on potential corporate risks.
• 59% say M&A is important or highly important
to the company’s strategic vision.
• 49% say fewer than half of their company’s
M&A deals were successful.
• Top reason for failed M&A deals: Difficult
integration process.

12. CFOs take a fresh look at taxes
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INTRODUCTION
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on potential corporate risks.
32% of CFOs have been involved with their
company’s tax strategies.
Most popular tax incentives to fund innovation
• Federal tax credits 56%
• State tax credits 45%
• Local/municipal tax credits 27%

13. What's next for manufacturing
CFOs?
What opportunities are on the horizon
for today's manufacturing CFO?
Find out more at
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Jeff French
Leader, Manufacturing Practice
Grant Thornton LLP
T +1 920 968 6710
E jeff.french@us.gt.com
@jfrenchgt